A BOARDROOM shake-up is on the cards at Flintshire-based housebuilder Redrow after founder Steve Morgan increased his stake and said he wanted a greater say in running the firm.

Mr Morgan, who started Redrow from his then home in North Wales with a £5,000 loan from his father in 1974, now has a 29.9% interest in the company – just below the 30% trigger for a full takeover offer.

Redrow said Mr Morgan want to take on an executive role which “would result in a fundamental change in the composition of the board”.

Liverpool-born Mr Morgan has increased his direct holding in the housebuilder from 16.96% to 23.46% through investment vehicles Bridgemere and Durcan.

He has an economic interest in a further 6.46% of the shares through financial instruments called contracts for difference.

The 55-year-old, who stepped down from the board in 2000, was unavailable for comment on his plans for the business.

But Redrow’s decision to seek clarity on his proposals and its stressed commitment to “high standards of corporate governance” could suggest Mr Morgan plans to take an executive chairman-style role generally frowned on in the City.

The Ewloe-based firm is in a round of meetings with institutional investors following interim results last week.

Redrow has axed 650 staff – half its workforce – since January 2008 because of the housing building slump. Last Tuesday it reported underlying pre-tax losses of £21.2m in the six months to December 31, compared with profits of £35.8m a year earlier. Revenues dropped 58% to £149.5m from £353m last time.

Passionate football fan Mr Morgan bought Championship team Wolverhampton Wanderers in August 2007 after being frustrated in his bid to take over Liverpool FC, the club he had supported since childhood.

Bridgemere paid a nominal £10 for Wolves and agreed at the same time to invest £30m into the club, which is currently top of the league and in line for promotion to the Premiership.

Redrow is Britain's sixth largest housebuilder by market value.

Mr Morgan floated the company in 2000.

The housebuilder said it was seeking clarity on the proposals, but declined to comment further.

Shares in Redrow jumped as markets took Mr Morgan’s move as a sign of value in the beleaguered sector after a punishing 18 months.

Panmure Gordon analyst Mark Hughes said: “We note that amongst the quoted house builders, this is the first instance of corporate activity or interest, and we would not be surprised to see the shares trade better in the short-term.”